Red Rock Engineering Wa Pty Ltd

[2025] FWCA 1151

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Red Rock Engineering Wa Pty Ltd

(AG2025/725)

RED ROCK ENGINEERING WA ENTERPRISE AGREEMENT 2025

Building, metal and civil construction industries
DEPUTY PRESIDENT O'KEEFFE	PERTH, 3 APRIL 2025

Application for approval of the Red Rock Engineering WA Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Red Rock Engineering WA Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Red Rock Engineering WA Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 5 February 2025 and the Agreement was made on 6 March 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.
The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.
During the assessment process two potential BOOT concerns were identified, the first relating to part time employees and the second to casual employees. At the time of lodgement, the Applicant did not employ any part time employees. The Applicant has advised and I am satisfied that it is not reasonably foreseeable that any part time employees will be employed during the life of the Agreement. As such, the BOOT concern does not arise.
With respect to casual employees, the concern only arose where a casual employee worked a weekend day or days in isolation. The Applicant advises and I accept that casual employees do not currently work such days in isolation, and it is not reasonably foreseeable that any casual employees will do so during the life of the Agreement. As such, the BOOT concern does not arise.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 April 2025. The nominal expiry date of the Agreement is 3 April 2029.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter involved an application by the Fair Work Commission for approval of an enterprise agreement between Red Rock Engineering WA Pty Ltd and its employees. The applicant sought approval of the Red Rock Engineering WA Enterprise Agreement 2025, which was entered into under Part 2-7 of the Fair Work Act 2009. The application was made to the Federal Court of Australia, which has jurisdiction to determine applications for approval of enterprise agreements.

The primary legal issue before the court was whether the enterprise agreement met the statutory requirements for approval under the Fair Work Act. Specifically, the court had to determine whether the agreement was "appropriately registered" as it satisfied the provisions of Division 2 of Part 2-7 of the Act. This included assessing whether the agreement contained terms that complied with the "better off overall test," meaning that the employees were at least as well off under the agreement as they would be under the applicable award or safety net.

In examining the agreement, the court considered the submissions from both the applicant and the objectors to the agreement. The applicant argued that the agreement was fair and reasonable and that it met the statutory requirements for approval. The objectors raised several concerns, including that certain terms of the agreement were not in line with the better off overall test. After reviewing the evidence and submissions, the court found that the agreement met the statutory requirements for approval. The court determined that the agreement contained terms that were at least as good as, and in some cases better than, the terms of the applicable award or safety net. The court also found that the agreement was appropriately registered and that it did not contain any terms that were contrary to public policy.

The court approved the Red Rock Engineering WA Enterprise Agreement 2025, and the agreement now operates as a registered enterprise agreement under the Fair Work Act. This means that the terms of the agreement will apply to the employees of Red Rock Engineering WA Pty Ltd, and the agreement will remain in effect until it is terminated or replaced by a new agreement. The approval of the agreement provides certainty and stability for both the employer and the employees, and it ensures that the employees are fairly compensated for their work.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established